Total Sales Revenue ($5 per serving) Less: Variable costs: Customer Meals: Single Serving $ Dual Serving Family Size 15,000 $ 50,000 $240,000 Total $305,000 Input Values: Number of Customer Meals Sales mix (% of customer meals) Number of Servings per Meal Number of Servings Dual Family Single Serving Serving 3,000 15% 1 Size Total 5,000 12,000 20,000 25% 60% 100% 2 4 3,000 10,000 48,000 61,000 750 1,250 3,000 5,000 3,000 5,000 12,000 20,000 6 10 24 40 Direct Materials ($1 per customer serving) $ 3,000 $ 10,000 $ 48,000 $ 61,000 Direct Labor ($0.75 per customer meal) 2,250 3,750 9,000 15,000 Number of Customer Orders Number of Donated Meals Variable Manufacturing Overhead (60% of Direct labor) Variable Manufacturing Cost ($1.25 per donated meal) 1,350 2,250 5,400 9,000 Number of Donated Deliveries 3,750 6,250 15,000 25,000 Customer Delivery Expenses ($2 per customer order) 1,500 2,500 6,000 10,000 Price Per Serving $ 5.00 per customer serving Donation Delivery Expense ($125 per delivery) 750 1,250 3,000 5,000 Variable Costs: Total Variable Costs $ 12,600 $ 26,000 $ 86,400 $125,000 Direct Materials ($1 per serving) $ 1.00 per customer serving Direct Labor ($0.75 per customer meal) $ 0.75 per customer meal Total Contribution Margin $ 2,400 $ 24,000 $ 153,600 $ 180,000 Less: Fixed Costs Allocated Based on Sales Revenue Variable Manufacturing Overhead 60% of DL Variable cost of donated meals 60% of direct labor cost $ 1.25 per donated meal Fixed Manufacturing Expenses $ 3,689 $ Fixed Selling Expenses 1,426 12,295 $ 4,754 59,016 $ 75,000 22,820 Variable delivery expenses (customer meals) $ 2.00 per customer order 29,000 Variable delivery expenses (donated meals) $ 125.00 per delivery Fixed Administrative Expenses 1,967 6,557 31,475 40,000 Total Fixed Expenses Net Operating Profit 7,082 23,607 113,311 $ (4,682) $ 393 $ 40,289 $ 144,000 36,000 Fixed costs: Fixed manufacturing costs $ 75,000 Single Serving Dual Serving Average Contribution Margin Per Meal Sold $ 0.80 $ 4.80 Family Size Overall $ 12.80 $ Fixed selling expenses $ 29,000 Average Contribution Margin Ratio (% of Revenue) 9.00 59.02% Fixed administrative expenses $ 40,000 Total Fixed costs $ 144,000 Break-even point (customer meals sold) Break-even point (total sales revenue) Margin of Safety (Customer Meals) Margin of Safety (Sales $) Degree of Operating Leverage Single Serving Dual Serving Family Size Total 2. Treat the following questions as independent scenarios. Use the starting spreadsheet to complete the following break-even analysis questions. a. How many single-, dual- and family-sized meals must be sold to break even? Single serving meal Dual serving meal Family size meal b. How much is the total sales revenue at the break-even point? Total sales revenue at the break-even point c. What was Bene Petit's margin of safety (in total meals sold) for the first year of operations? Margin of safety d. How many meals will Bene Petit donate to the homeless at the break-even point? Number of meals